Deck Generation overview deck May 27 2016 pdf

MCKINSEY SOCIAL INITIATIVE

Generation Overview

MCKINSEY SOCIAL INITIATIVE 2

ContentsWhat is Generation?

How will we achieve our goals?

What is our current status in the US and future plans?

Will you be a part of thechange?


What is Generation?



Generation seeks to close the skills gap for young people.

WHAT IS GENERATION?

We are implementing a program to place disconnected young adults in jobs, giving them the skills and support they need to achieve lifelong personal and

professional success—and fundamentally change their life trajectories.


WHAT IS GENERATION?

Generation is built upon deep research into thebest ways to address youth unemployment

• McKinsey & Company study of 150 employment programs in 25 countries, and surveys of over 15,000 employers, educators, and young people

• Education to Employment: Designing a System that Works report summarizes findings

• Independent nonprofit McKinsey Social Initiative (MSI) founded by McKinsey& Company

• Youth unemployment chosen as first issue for MSI: Generation is born.

• Generation is live in eight cities across five countries (India, Kenya, Mexico, Spain, and US), with plans to rapidly expand

2013 TODAY2014



WHAT IS GENERATION?

Generation’s goals are ambitious

young people trained and placed into promising careers

countries

years

methodology to enable others to expand the impact to millions more youth around the world


How will we achieve our goals?


8

HOW WILL WEACHIEVEOUR GOALS?

Generation addresses two areas of need forthe youth employment field


9MCKINSEY SOCIAL INITIATIVE

The Generation approach has seven components

A community that follows graduates into

the workplace

5-12 weeks of technical, behavioral, mindset & professional presence skill training

Social support services & mentorship along the way

1

3

4

5

Jobs & direct employer engagement from the start

2 Recruit students based on intrinsics, effort, and employment standards for the profession


Return on investment

for employers, students, and

society

6

GENERATION PROGRAM OVERVIEW

9

7Data at the center

10


101010


Generation is assessing three types of ROI, working with Gallup to plan and execute a long-term research agenda

▪ Cost effectiveness of differentinterventions

▪ Immediate job success

▪ Financial impact▪ Physical & mental well being

▪ Long term career path

▪ Lower training and recruiting costs

▪ Higher productivity and quality

▪ Lower turnover, abseentism, andtardiness

Programimpact on participants

Impact ofGeneration programvariations

Return on investmentfor employers

We are committed to tracking ROI of our participants for 15 years. Once we’ve created the highest impact program, we

want Generation to be “open-source” so that anyone who wants to adopt the approach

anywhere in the world is able to do so

10


Cumulative number of students enrolled by month

479822

220 319

964

308

291

430

0

500

1,000

1,500

2,000

2,500

3,000

125102

148329

Dec-15

174

1,114

94

466

284

May-16

2,628

595

Mar-16

1,880

220106

82

Jun-15

313

30490

Sep-15

746

0001283 036

095

256

Dec-14

22044

Mar-15

00

ES MXKEUS IN

# cohorts (launched to date)

Total students enrolled by May 2016:

We supported 1200 youth in our first year of operation, and have doubled to reach over 2600 in the last five months

5 10 14 32 44 81 100

We have 90 percent job placement for our graduates by graduation day, with 90 percent who continue to be employed nine months out


Examples of our impact to date (1/3)

Spain

Role: Digital marketers and web designers (9 week program)• 90 percent of first cohort of graduates continue to be employed nine

months out (and counting) – this is 3X the employment rate of local youth employment programs for the same professions

• More than 75 percent of Generation’s employed graduates are working in over 50 small and medium-sized businesses (70 percent of Spain’s private sector jobs are in small and medium enterprises)

12

Kenya

Role: Sales for financial and insurance products (6 week program)• 100 percent of first nine cohorts (800 youth) received job offers by

graduation day, with two-thirds receiving multiple offers

• Our bank employers typically only extend offers to 10 percent of university interviewees; however, these same employers made job offers to 60 percent of the Generation graduates whom they interviewed, the majority of whom have only a secondary school or pre-university certificate and had a C or below grade at school

• Less than 10 percent voluntary attrition of graduates by the end of month three on the job, in contrast to 35-50 percent attrition for peers at same employers

• Employers have begun paying 25 percent of the operating cost as of 2016 Q1



13


Role: Nurse assistants (8 week program)• Nurse supervisors report that Generation graduates:

– Save 30-60 minutes of their time per shift

– Perform 3X better than their peers on patient care and patientsafety, and 7-10X better than their peers on courtesy and professionalism

• Over 80 percent of nurse supervisors state they want to hire more Generation graduates

• Employers have begun paying up to 30 percent of the operatingcost as of 2016 Q1

USA

Role: Certified nurse assistants (8 week program)• 90 percent passed the state certification exam vs. national

average of 50 percent

• 85 percent employed by graduation day and 80 percent of graduates continue to be employed six months out

• 80 percent of supervisors rate Generation graduates as above average employees compared to other staff members with similar experience

• Cost of recruiting and training a Generation graduate is 2-3X cheaper than the equivalent at our employer partners

India


14


Role: Retail cashiers (3 week program)• 250 graduates with an 80 percent placement rate as cashiers

• Generation cashiers outperform their control group on all dimensions:

– Generation graduates score 40 percent higher than the control group on customer orientation

– Generation graduates close the day with an average deviation (money in the till) that is 50 percent lower than the control group

– Generation graduates have zero attrition and zero abseentismat the two month mark

• 94 percent of supervisors state they would hire a Generation graduate again

Mexico


Generation is designed for self-sustainability

Catalytic philanthropy

Phase 1

Phase 2

Shared Cost

Self-sustainability

Phase 3


Financial and in-kind support to prove theGeneration model and ROI

Transition to innovative costsharing with employers andstudents

100% self-financing by end ofYear 2, with employers, students, and government sharing full cost

15

What is our current status in the US and future plans?

A MCKINSEY SOCIAL INITIATIVE 16

The Generation US goal is to support 200KUS youth by 2020Context

• Today, more than 6.7 millionyoung adults (ages 18-29) in the USare out of work, and three times as many are underemployed.

• At the same time, 40% of employers say a skills shortage is leaving them with entry-level vacancies.


The Generation US goalYoung adults trained and placed into meaningful career pathways

75,00060,000

40,00025,000

20192017 201820162015

Number

Cumulative liveschanged by 2020

200K

500

WHAT IS OUR CURRENT STATUS IN THE US AND FUTURE PLANS?

17

18

Our initial focus is on four sectors

Generation’s approach works in any middle-skill profession in any city in any part of the world.

Healthcare Customer service Technology Advanced

manufacturing

▪ Machinist1▪ Industrial

machinery mechanics1

1 Preliminary MCKINSEY SOCIAL INITIATIVE

▪ Computer support specialist (help desk)

▪ Computer network support specialist

▪ Digital marketer▪ Web

designer/programming

▪ Certified nursingassistant

▪ Customer serviceretail associate

▪ Front desk associate

▪ Pharmacy technician


19

Examples of the broad coalition ofemployers with whom we work



Current & target employer partners

San Jose, CA Wilmington, DE

Skills mappings:

San Jose, CASan Francisco, CAMiami, FLPittsburgh, PA

National

Our target professions

▪ Certified nursing assistant

▪ Computer user support specialist

▪ Computer network support specialist

▪ Web designer

▪ Customer service associate

▪ Front desk clerk

Healthcare

Technology

Customer service

Active discussions


Active and target cities

Target cities

Confirmed cities

New Orleans, LA

Wilmington, DE

Atlanta, GA

Houston, TXJacksonville, FL

San Francisco, CA

Miami, FL

Pittsburgh, PA

San Jose, CA

Chicago, IL New York, NY

Washington D.C.

Las Vegas, NV

Generation USA scaled across the United States

GENERATION IMPACT TO DATE

170Current students

80%Graduation

rate

342Graduates

7Cities

30Cohorts

78%Employed 30

days after graduation

40+Employer partners

Generation US has graduated 342 students in just over 15 months

3Professional

programs


22

Early returns from Gallup supervisor surveys indicate Generation graduates are overall performing above average relative to peers

Initial findings


93 percent of supervisors would recommend their employer hire Generationgraduates again

80 percent of Generation graduates were ranked above average relativeto non-Generation employees with similar levels of experience

100 percent of graduates were recognized for complying with safety/regulatory practices

67 percent of customer service graduates were significantly better at establishing a warm and welcoming environment according to supervisors

67 percent of healthcare graduates were better or significantly better at havinga positive attitude when attending to patients

23

Likewise, employers have provided enthusiastic feedback about the quality of Generation graduates


Shyla's got a good attitude, a great smile, and is always looking after customers. She sought out Home Depot because of their benefits and practice of promoting internally. She plans to apply to their management training program and eventually get a bachelor’s degree in business. I would love to have more employees just like her

As an example of an exceptional Generation graduate, our recent hire (Kacedrine) is avid to learnand grow; and pushes herself to make the best out of the opportunity she’s earned. We can easily appreciate this by the way she presents herself every day, her big smile and engagement withour team and the job at hand. She has very impressive results from her guest interaction as well

Leona consistently hustles while at work, and creates a warm, encouraging environment for her coworkers. On top of that, Leona’s got a smile and a laugh that’s infectious, and our guests love being able to spend a few moments chatting with her. Typically, we review our new-hires 90 days into their career with the hotel and then we decide whether we will keep, or let that employee go. Leona hasnot yet made it to her 90 day mark with the Hyatt, but she’s already been promoted to help opena brand new Outlet in the hotel. Long story short, we’re lucky to have Ms. Leona and love havingher energy and spirit as part of our team!

Juan has been doing exceptionally well since joining the Inktel team. He has a lot of desirable characteristics that I would like our other employees to demonstrate. We look forward to future partnerships that help produce effective/productive employees that we can add to the team, and we also look forward to watching these candidates grow and mature as they take on new challenges.”

24

Student input indicates Generation is also improving young people’s career prospects and well being

Hector Flores, 1st Retail cohort San JoseI knew for a long time that I wanted a jobin retail or hospitality but wasn’t getting anywhere so took any job I could get. I used the persistence and future orientation skills I learned as a Generation student to follow up with employers, and I got a job offer with the Fairmont, my top choice.”

Yannick Janal, 1st Retail cohort Miami “Before Generation, I saw my job ( at the store) as simply bagging groceries. Now I see my job as putting smiles on faces.My manager noticed this change andhas asked me to join the manager training program.”

Sheila Diaz, 2nd Healthcare cohort Wilmington“I took this opportunity to make a better life for me and my daughter. It is helping me support my family. If it wasn’t for this program, I don’t know how I would do it. I was working a dead end job. Generation opened the door for me to move forward in life.”

Jessica Dubois Miller, 1st Healthcare cohortPittsburgh

“I learned about myself and my strengths, and gained the skills do great things. Due to my growth mindset and ability to apply his new skills like being proactive and persistent, I am being considered for promotionto Assistant Manager

On a ten rung ladder from worst to best possible life, participants evaluated their life almost a rung and a half higher on the ladder between beginning and graduating from the program


Gallup well-being evaluation


CNA students outperform their non-generation peers


Healthcare

90% Generation pass rate for state certification exam vs. 50% national average

80% Generation graduates employed or still in school

Generation graduates demonstrate above average professional skills (e.g. professionalism, empathy)

Our latest Wilmington cohort had a 100% retention rate vs. 73% retention rate for cohort 1, evidence of our continuous improvement efforts



Customer service has already impacted more than 225 students


Customer service

147 students have enrolled in 2016, a figure which will continue to grow quickly

Graduated 73 young people in 2015, of which 56 are currently employed

95% retention rate in 2016 vs. 78% last year, a reflection of effective continuous improvement efforts

Improved problem solving confidence: 81% of students said they could “find lots of ways around any prob-lem” at gradua-tion vs. 62% at program start



Building coalitions in cities across the US to build Generation into TechHireapplications

Received grants to launch in 3 cities (Miami, Jacksonville, San Jose) in March 2016

8+ employers have played an active role in skills mappings

Program will certify graduates with nationally recognized certifications (Comp TIA A+ and/or Comp TIA Network+)


Technology recently launched on both coasts


Technology

27


GENERATION US PROGRAM OVERVIEW

We continue to secure funding to deliver new programs and scale existing ones

Current funding partners

▪ Certified nursing assistant

▪ Delaware WIB

▪ Entry-level helpdesk▪ Computer support

specialist▪ Web designer

▪ Sobrato Foundation▪ Miami Dade Idea Center▪ CareerSource NorthEast Florida

(Jacksonville WIB)

▪ Customer service associate

▪ Pharmacy technician

▪ Walmart Foundation

▪ N/A▪ Delaware Department of Health

and Social Services▪ Longwood Foundation▪ McKinsey & Co.

Technology

Healthcare

Customer service

Profession-agnostic

Our target professions



We have created unique data tools and student tracking processes to bring analytical rigor to our work


Track critical KPIs across the student/graduate journey

Analyze leading indicators of success to predict performance

Validate elements of the Generation model

▪ Student recruitment▪ Attendance and in-class

performance ▪ Placement in jobs▪ Graduate performance on the

job vs control (e.g. retention, productivity/quality outcomes)

▪ Counter-intuitive success factors

▪ Link between in-class and on-the-job success

▪ Effectiveness of recruiting channels and assessments

▪ Reach into youth most in need and likely to benefit

Will you be a part of the change?

A MCKINSEY SOCIAL INITIATIVE 30


WILL YOU BE PART OF THE CHANGE?

Change lives.

Transform business.

Make Generation a movement.

Help us change a million lives,

and bring vibrant new talent into

our workforce for the long term.

31

Generation is the first program of the McKinsey Social Initiative, a non-profit that focuses McKinsey’s problem-solving expertise on the world’s most complex social challenges.

32

33


APPENDIX



* representative sample

WHERE ARE WE TODAY?

Funders Employers*

Implementers

Fixing youth unemployment takes all of us, so we work witha growing, globalpartner coalition

JDG

34


Individual performanceincreases

Reduction in absenteeism and

disciplinary actions

Internal promotion of candidates to higher level

jobs rather than costlier external new hires

feesReduction in required interview hours, ads, use ofrecruiting agencies, etc.

Better trained professionals who are productive from day one

Fewer hires who leave in a short amount of time (<1 year)


By proving the ROI case to employers, we can makeGeneration self-financing by introducing commensurate

Return on Investment

Recruiting

Professionalism Turnover

Access to High Level

Human Capital

Quality of Work

Training

35

WHAT IS GENERATION?

What kind of jobs do we target for our students?

• High growth industries and/or highemployer demand

• Medium skill level required, possible to fully train in an 8-12 week program

• Provides a livable wage (i.e., above localminimum wage) and viable career

• Interesting and attractive to young people in our target population

• Marked by high scarcity or high churn, so that employers are committed to closing the existing skills gap



Who are the young adults we recruit?

• Aged 18-29, both men and women

• Unemployed or underemployed

• Disconnected and discouraged

• Dealing with life circumstances that are barriers to education

• Has not found success in the education to employment track

• At risk of falling off of the path towards a fulfilling and sustaining career


Contact: Ronald M. Allen, 609-247-2799 [email protected]

Deck Generation overview deck May 27 2016 pdf

Documents

Transcript of Deck Generation overview deck May 27 2016 pdf